PCR Materials VS PIR Materials

With the tightening of global environmental regulations—such as the EU’s PPWR and California’s SB 270—and growing consumer awareness of sustainability, recycled material packaging has become a key strategy for companies to achieve ESG goals and strengthen market competitiveness.

Among these materials, PCR (Post-Consumer Recycled) and PIR (Post-Industrial Recycled) plastics are the two most common options.
However, they differ significantly in terms of compliance, application scenarios, sustainability value, and performance.
Many enterprises face challenges such as how to balance environmental value with cost and how to ensure regional compliance and product compatibility when making material choices.

To address these concerns, this article provides a systematic overview of the differences between PCR and PIR packaging across 12 key dimensions—including definitions, global compliance, industry adaptation, category-specific performance, and brand case studies.
Helping businesses make informed and accurate material selections that align with their sustainability and market goals.

Standard Definition of
PCR Materials & PIR Materials

According to the International Organization for Standardization (ISO):

• Post-Consumer Recycled (PCR) materials:
  PCR materials are defined as “materials generated by households or by commercial, industrial, and institutional facilities as end users of products that can no longer be used for their intended purposes, including returns from the distribution chain.”

   

  In simple terms, PCR materials come from products that have already completed their service life and been used by consumers.

  For example, beverage bottles, food containers, and daily household packaging. After being collected, sorted, cleaned, and reprocessed, these materials are given a second life as new packaging solutions.

  In the field of plastic packaging, PCR materials primarily originate from items that have reached their end of use—such as beverage bottles, food packaging, and household containers.
  These materials are collected, sorted, cleaned, and reprocessed into new packaging applications.

  The ISO 14021:2016 standard clearly distinguishes PCR from other recycled materials: only plastics recovered after consumer use.
  Such as discarded bottles, CDs, electronic components, or appliance casings—qualify as PCR. Materials that have not gone through the consumer stage cannot be classified as PCR plastics.

  By adopting PCR packaging, brands not only reduce environmental impact but also enhance sustainability credentials and strengthen consumer trust in their ESG performance.

• Post-Industrial Recycled (PIR) materials:
  PIR materials are defined as “materials diverted from the waste stream during the manufacturing process.”

   

  In other words, PIR refers to plastic waste and offcuts generated during production that are collected, reprocessed, and reused—before ever reaching the end user.

  More precisely, PIR includes materials that arise from factory manufacturing waste, such as leftover trimmings, rejected parts, or excess plastic transferred out of the production process.

  However, it does not include in-process regrind or materials that are directly reused within the same production cycle.

  The Chinese industry standard provides a more detailed explanation, describing PIR as plastic waste transferred out of the manufacturing process due to production or technical needs (commonly known as “shuikou material”).

  The key distinction is that PIR materials have never entered consumer circulation—they are recovered exclusively from industrial production waste.

  While PIR contributes to waste reduction and resource efficiency within factories, its sustainability value differs from PCR, which directly reduces post-consumer plastic pollution.

Global Compliance and Certification Analysis of PCR Packaging and PIR Packaging

Global Certification Systems for PCR Packaging and PIR Packaging

• The Global Recycled Standard (GRS) is one of the most internationally recognized certification systems for recycled materials.

  It is a voluntary, comprehensive product standard that requires third-party verification across several key aspects, including recycled content, chain of custody, social and environmental responsibility, and chemical management.

  Under the GRS requirements, a product must contain a minimum of 20% recycled material to qualify for certification.
  If the product intends to carry the GRS label, the proportion of recycled content must exceed 50%.
  This ensures that certified products not only contribute to circular economy goals but also maintain high standards of transparency and sustainability throughout the supply chain.

  The GRS certification is structured around a three-tier rating system:

  1. The Copper Standard requires products to contain at least 30% recycled materials;
  2. The Silver Standard applies to products with 70% to 95% recycled content;
  3. The Gold Standard recognizes products containing 95% to 100% recycled materials.

  Importantly, the GRS mandates full supply chain certification.
  Every stage of production—from recycling and raw material processing to manufacturing, distribution, and the final business-to-business sale—must be independently certified.

  This comprehensive approach ensures traceability, integrity, and transparency throughout the entire recycling and production process.
  

• The Recycled Claim Standard (RCS) is another key international certification system for verifying recycled material content.

  Under the RCS framework, a product must contain at least 5% recycled material by weight, and the authenticity of this content must be verified through either Mass Balance or Physical Segregation methods.

  Unlike the GRS, the RCS does not include a tiered grading system, but products with higher recycled content (typically above 20%) often gain stronger market recognition and sustainability value.

  Certified products are required to clearly state the exact percentage of recycled material on their labels, ensuring transparency and traceability across the supply chain.

• The SCS-103 Standard, developed by SCS Standards, applies to products or materials that contain mechanically or chemically recycled content, including both pre-consumer and post-consumer recycled components such as plastics, metal alloys, and fibers.

  This standard offers a comprehensive and flexible certification framework, enabling manufacturers across various industries to verify and communicate the recycled content of their products with credibility and transparency.

Regional Compliance and Certification Requirements

European

The European Union (EU) maintains the strictest and most comprehensive certification and compliance requirements for recycled packaging worldwide.

The upcoming EU Regulation on Eco-Design for Sustainable Products (ESPR), set to take effect in 2024, establishes a unified framework for implementing sustainability requirements across nearly all consumer goods sold within the EU market in the coming years.

In parallel, the revised Packaging and Packaging Waste Regulation (PPWR) introduces ambitious circular economy targets — requiring at least 65% of all packaging and 70% of plastic packaging to be recycled by 2025.

These measures collectively reinforce the EU’s leadership in advancing sustainable product design, recyclability, and material traceability throughout the packaging value chain.

United States

In the United States, four states have introduced legislation mandating the use of post-consumer recycled (PCR) materials in packaging.

On January 18, 2024, New Jersey implemented minimum recycled content requirements — 10% for rigid plastic containers and 15% for plastic beverage bottles — becoming the third state, after Washington and California, to enact such laws.
Notably, New Jersey is the first state to extend these mandates beyond beverage containers and trash bags to include hard plastic packaging.
The California SB 270 Act requires third-party certification of PCR content, while New Jersey’s S2515 Act also mandates verification of recycled material claims.
In Maine, under LD 1467, an advisory committee retains discretion over certification enforcement, though PCR verification requirements are expected to be integrated in the future.

Although these states represent only a fraction of the U.S. — roughly three out of fifty — they account for over 15% of the national population.
As a result, many companies opt to standardize their regional or national packaging supply chains to comply with the strictest state-level regulations, thereby ensuring broader compliance and operational efficiency.

Chinese

In China, the government is accelerating the development of a comprehensive standard system for recycled plastics to support circular economy goals and green manufacturing.

The “Technical Specification for Pollution Control of Waste Plastics” (HJ 364-2022) came into effect on May 31, 2022, establishing strict environmental management requirements for waste plastic processing and recycling.
Subsequently, the “Guidelines for Recycling and Reuse of Plastic Waste” (GB/T 30102-2024) took effect on December 1, 2024, providing detailed technical guidance for the classification, collection, and reuse of recycled plastics.

China is also in the process of developing its first traceability evaluation standards for post-consumer recycled (PCR) plastics and marine plastics, marking a significant step toward enhancing recycled material transparency, product safety, and lifecycle management within the national recycling framework.

Sustainability Analysis for PCR & PIR

Under the impetus of global “dual carbon” goals and the circular economy strategy, sustainability in the packaging industry has shifted from being an added advantage to becoming a fundamental requirement.

However, although both PCR (Post-Consumer Recycled) materials and PIR (Post-Industrial Recycled) materials belong to the category of recycled resources, their sustainability values differ significantly in essence.

Carbon Footprint of PCR Materials & PIR Materials

• PCR Materials:
  1. Carbon Reduction Across the Product Life Cycle — On average, using PCR materials can reduce carbon emissions by 30% to 50%, primarily by avoiding the high energy consumption associated with extracting and refining virgin petroleum.
  2. Lower Energy Consumption in Recycling — The energy required for PCR regeneration is approximately 40% lower than producing virgin materials, thereby reducing dependence on fossil energy.
  3. In certain regions, such as the European Union, companies may also apply carbon credits for PCR usage, effectively lowering their carbon tax liabilities.
• PIR Materials:
  1. Limited Carbon Reduction — Using PIR materials typically reduces carbon emissions by only 5% to 15%, as it primarily prevents emissions from landfilling or incinerating industrial waste, without reducing the energy consumed in the initial production of virgin materials.
  2. Low-Energy Regeneration with Limited Impact — PIR recycling generally involves direct crushing and reuse within the factory, which is energy-efficient but offers minimal overall emission reduction.
  3. PIR usage rarely qualifies for carbon credit schemes in most regions, providing limited support for achieving corporate carbon-reduction targets.

Resource Recycling Efficiency of PCR Materials & PIR Materials

• PCR Materials:
  1. Closed-Loop Recycling — Enables a full circular cycle from consumer use → collection/recycling → production, effectively extending the life cycle of plastics, which can typically be recycled 3 to 5 times.
  2. Environmental Pollution Reduction — Minimizes the impact of post-consumer plastic waste on the environment, including marine pollution and landfill accumulation.
  3. Reduced Dependence on Virgin Resources — Lowers the demand for virgin plastics, thereby relieving pressure on crude oil extraction and contributing to broader resource sustainability.
• PIR Materials:
  1. Limited Scope of Recycling — PIR recycling primarily involves internal circulation at the production stage and does not address post-consumer plastic waste, leaving issues like urban plastic pollution unresolved.
  2. Short Recycling Cycle — The material cycle is typically one-time reuse within the production process, resulting in a limited resource reuse lifespan.
  3. Industrial Waste Reduction Only — PIR primarily achieves industrial waste minimization but does not reduce the overall demand for virgin plastics, limiting its impact on broader resource sustainability.

Market Value of PCR Materials & PIR Materials

• PCR Materials:
  1. Supports ESG and Sustainability Commitments — Aligns with core brand ESG indicators, helping companies demonstrate their public commitment to sustainable packaging, as exemplified by leaders like Unilever and Coca-Cola.
  2. High Consumer Acceptance — According to the 2024 Packaging Industry Survey, 68% of consumers in Europe and the U.S. are willing to pay a 5% to 10% premium for products packaged with PCR materials.
  3. Market Differentiation and Competitive Advantage — PCR packaging can serve as a distinctive selling point, enhancing product appeal and terminal market competitiveness.
• PIR Materials:
  1. Limited ESG Impact — PIR is difficult to incorporate into the core ESG achievements of a brand and is generally recognized only as a supplementary measure for internal environmental management.
  2. Low Consumer Recognition — Due to limited public awareness, PIR packaging offers minimal differentiation for end products in the consumer market.
  3. Primarily a Cost-Saving Measure — PIR is often valued more for reducing production or waste disposal costs than as a strategic sustainability solution, limiting its contribution to brand perception.

Core Advantages and Disadvantages of PCR Materials and PIR Materials

In selecting recycled material packaging, the guiding principle is that “there is no absolute optimum, only relative compatibility”.

The two mainstream recycled material types—PCR (Post-Consumer Recycled) and PIR (Post-Industrial Recycled)—each carry distinct core advantages and disadvantages.

Action at KDW

KDW Packaging has been deeply committed to developing recyclable and sustainable flexible packaging for nearly a decade.

Through continuous innovation and technical accumulation, we have made significant progress in the application of Post-Consumer Recycled (PCR materials ) and Post-Industrial Recycled ( PIR materials ) across multiple packaging structures.

Our recycled structures include:

• PE/PE – PIR
• PET/PE – PIR
• PET–PCR/PE–EVOH–PCR
• PET–PCR/AL/PE

Where the PCR content in PET reaches 70% on average, and can be increased up to 100% under certain conditions.

For example, in 50μ PE films, the PCR/PIR content can reach up to 60%, while in 50μ white PE, the maximum proportion of PCR/PIR is about 55%.

These structures ensure a balance between sustainability, material performance, and packaging safety, meeting the requirements of global environmental regulations such as the EU’s PPWR and California’s SB 270.

If you are exploring recycled or eco-friendly packaging solutions, KDW Packaging would be delighted to provide technical support and customized recommendations based on your specific product and market needs.